Have you heard of the term Shadow Inventory?

    We are number 1 with REMAX RealtorsFirst, let me explain what the term “shadow inventory” means in the eyes of the “powers that be”.

    The “Shadow Inventory” are those properties that are in some stage of Foreclosure.

    • It might be properties that are being re-viewed for the “foreclosure chopping block”
    • It could be those that have completed the foreclosure process.
    • Foreclosures which are in some stage of eviction.
    • Finally, they could be referencing the properties that are in Short Sale or the Loan Modification Stage.
    • Properties that have completed the foreclosure process and are being “strategically” held so the market is not Saturated and further harmed by a mass release of distressed real estate.

    “For example, California has nearly 270,000 homes in its shadow inventory. “It’s absolutely an impediment,” Dustin Hobbs, a spokesman for the California Mortgage Bankers Association, told the USA Today. “It’s hanging over the market.”

     

    From an economic view, those numbers that were spoken of as “shadow inventory” are staggering.

    Within a Healthy Real estate market, the typical numbers of homes that are within the Foreclosure Inventory are about 1% of the total properties for sale.

    We passed that number with the fall of the Sub Prime bank back in 2007.  40-60% of the Real Estate for sale are of the Foreclosure and Distressed variety which populate the market today in the Santa Clarita Valley.

    Of those homes, some are not on the market for sale.  Some are being lived in by Tenants.  Some are owner occupied.  Some are vacant caught in the “visible” shadow inventory.

    We want to give those of you some “sense” of the real estate market and know where you stand as Residents, buyers and sellers. It is important to get the 20/20 on all Markets so you can base your decisions on fact not conjecture.

    Please R/T if you have found this valuable.

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    Paris and Connor MacIvor

    Connor and Paris MacIvor are in the Top 1% of Realtors Nationwide, starting their real estate business in 1998 with RE/MAX Gateway - Santa Clarita Valley and Valencia CA. Their becoming licensed real estate consultants and representatives came from the horrible experience they had when they bought their first home. There were many things that the agent they had hired did not explain and disclose, which per law he should have. Getting that agent on the phone after they closed escrow and after he had gotten paid was impossible. Paris and Connor called the broker, the board of realtors, the office manager and all they received was the promise of a phone call back. The remedy did come, but not as fast and in the way they wanted. That act - that bad agent was the reason why Paris and Connor became Realtors. That was all they needed to vow to never let the same fate befall anyone else, that befell them. Today Connor and Paris are focused on client service. Protection and top-shelf service with regard to their real estate clientele. They primarily work within the Santa Clarita Valley and Valencia CA. However, for a referral, where 80+ of their business is referrals they have License and Will Travel to other parts of Ventura County, Los Angeles County, and Orange County to handle real estate transactions for those who trust their real estate operation. Writing on their Real Estate Blog is a passion. SCVnest.com/blog is where you will find over 10,000 real estate articles. Go to SCVnest.com/radio to listen to their latest real estate radio broadcast.

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